Urs Bumbacher Markus GmĂźr Hans Lichtsteiner
NPO Management – A European Approach
Urs Bumbacher Markus GmĂźr Hans Lichtsteiner
NPO Management – A European Approach The Fribourg Management Model for Nonprofit Organizations 1st English edition (based on the 7th, completely revised German edition)
In cooperation with: Peter Schwarz Robert Purtschert Charles Giroud Reinbert Schauer Andreas Kattnigg Guido Kaufmann Claus Philippi
Haupt Verlag
1st English edition 2018 (based on the 7th, completely revised German edition) Bibliographic information published by the Deutsche Nationalbibliothek: The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available at: http://dnb.dnb.de ISBN 978-3-258-08072-7 All Rights reserved. Copyright Š 2018 Haupt Berne Any kind of reproduction without permission of the owner of copyright is prohibited. Cover design: RenÊ Tschirren, Berne Typesetting: by the authors Printed in Germany www.haupt.ch
Preface
Preface to the First English Edition Translating a successful management textbook from one language and cultural setting into another often proves to be challenging. This certainly holds true for the Fribourg Management Model for Nonprofit Organizations, a management textbook that was originally developed for scholars, students and management practitioners of NPOs in the German-speaking parts of Europe. Given its unique and pioneering approach, the model was well received by its target groups and has therefore already been published in its eighth German edition. Its success has, time and again, called for an English translation. Translating the model, however, meant a challenge in two ways: 1. Language and terminology: German science-based textbooks, such as this one, tend to be written in complicated language, making them difficult for the wider public to read. Moreover, they often use a specific, home-grown terminology that differs considerably from the one used in Anglo-Saxon textbooks. The English translation therefore needed to provide a simplified text and an adapted terminology, while still trying to remain as true to the original as possible. 2. Examples and cases of organizations: The original textbook refers to a number of cases and examples of organizations from German-speaking Europe that are of only limited relevance to English-speaking readers. All the examples and cases with too narrow a scope therefore had to be eliminated or replaced by something more generic in the English text. Given these adaptations, we hope this English version will be as well received as its original German editions. The authors would like to thank Ania Dardas for her careful copyediting and Katherine Corich for a diligent and thoughtful review of the entire manuscript. Furthermore, the authors are also indebted to Peter Suter, Remo Aeschbacher and Elisabeth Homberger for their technical support. Any remaining errors are the sole responsibility of the authors.
Fribourg/Switzerland, December 2017 Prof. Dr. Urs Bumbacher Prof. Dr. Markus GmĂźr Prof. Dr. Hans Lichtsteiner
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Preface
6
Preface
Preface to the Seventh German Edition Every standard work of business administration was created by authors who, at a given moment, put some new, ground-breaking ideas and concepts to paper. Over the years, they subsequently refined their work and adapted it to new circumstances. This usually continued until they withdrew from science. If such a work is not continuously looked after, it remains at a given stage of development, may be overtaken by new developments, turns into a milestone in the history of business administration and eventually risks becoming entirely obsolete. The Fribourg Management Model for NPOs (FMM) is such a standard work of business administration. Created back in the 1980ies, this work has set essential tones in management theory for NPOs. As authors, Peter Schwarz and Robert Purtschert were instrumental in creating this innovative and pioneering work. For many years they fostered and updated the model, additionally extending it by way of complementary volumes. Today, the complete FMM comprises more than 1,800 pages of insights, tools and methods on how to lead NPOs to success. Adhering to their own management principles, the authors of the FMM made provisions to ensure that the model would not – as standard volumes sometimes do – turn into a memorial. Thus the rights to the FMM were transferred to the Ernst-Bernd Blßmle Foundation. This helps to ensure that the model will continue to be updated and continuously developed. It is a great pleasure and honor for us to have been entrusted with this important task. As evidenced by this present 7th edition of the model, we are determined to approach the task thoughtfully and diligently: essential elements that have proven their worth over decades remain unchanged, while adjustments are continuously made where progress and gains in knowledge have been achieved. Thus, in the chapter on fundamentals (as in others), we have additionally integrated the systematics and the findings of the Johns Hopkins Comparative Nonprofit Sector Project (CNP) into the points of view. The basic views of an NPO as a starting point for model design were complemented by those regarding the NPO as an object of diverse interests, a micro-political arena as well as a strategic project. As regards the guiding principles and design criteria for System Management, we have assigned importance to the aspect of equilibrium between internal and external, between conservation and change as well as between centralized and decentralized. The three levels of planning have been maintained; they have,
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Preface
however, been newly defined in terms of content and terminology and therefore now correspond to the terminology predominantly used in business administration theory today. The chapters on leadership and human resources were also fundamentally revised, as in these areas scientific research has gained substantial new insights in recent years. And lastly, we have departed from certain terms such as “professional officers” (or “Profis” in German) and “amateur officers” (“Milizer” in German). As much as these terms may have been original and thus closely linked to the Fribourg Management Model, they have nonetheless frequently been a source of unnecessary misunderstandings and confusion. Beside numerous changes and additions to the content, the visual form – the layout – was also fundamentally revised and modernized. We would like to thank everyone involved for their contribution, in particular our two coauthors Reinbert Schauer and Charles Giroud. We would also like to thank Irène Weber, who was instrumental in developing and realizing the new layout, as well as our publisher Matthias Haupt, and our proofreaders, for the successful outcome of this 7th edition. We hope it will be as well received as the prior editions.
Fribourg/Switzerland, March 2013
Prof. Dr. Hans Lichtsteiner Director of Continuous Education
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Prof. Dr. Markus Gmür Director of Research
Contents
Contents 1
Fundamentals on the Management of NPOs ...................................................... 17 1.1 Definition and Characteristics of Private Sector NPOs ............................................. 17 1.1.1 Definition of NPOs ..................................................................................................... 19 1.1.2 Typologies of NPOs .................................................................................................... 25
2
1.2
On the Business Administration Theory of NPOs ..................................................... 31
1.3
Development Directions in NPO Management .......................................................... 35
The Fribourg Management Model for NPOs ......................................................37 2.1 Purpose and Importance of the Model ......................................................................... 37 2.2
Basic Views of the NPO as a Starting Point for the Model Design ......................... 38
2.2.1 The NPO as a System.................................................................................................. 38 2.2.2 The NPO as an Object of Diverse Interests ........................................................... 43 2.2.3 The NPO as a Micro-Political Arena ........................................................................ 46 2.2.4 The NPO as a Service Operation .............................................................................. 50 2.2.5 The NPO as a Value- and Culture-Driven Community ........................................ 53 2.2.6 The NPO as a Strategic Project ................................................................................. 55 2.2.7 The NPO as a Learning Organism ............................................................................ 57
3
2.3
The Design Logic of the Management Model ............................................................. 62
2.4
Structure of the Model ..................................................................................................... 65
System Management ............................................................................................ 71 3.1 Fundamentals .................................................................................................................... 71 3.1.1 The Concept of General Management ..................................................................... 71 3.1.2 Total Quality Management (TQM) as Management Philosophy Aiming at “Management Excellence”.......................................................................................... 77 3.1.3 Design Criteria in System Management.................................................................... 81 3.1.4 The Governance Model for System Management: Management by Objectives and Exception (MBO + MBE) .................................................................................. 92
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Contents
3.2
Consensus-Backed Decision-Making and Implementation ....................................... 97
3.2.1 Structural and Process-Related Aspects.................................................................... 97 3.2.2 Methods and Procedures in Consensus-Backed Decision-Making .................... 101 3.2.3 Control (Monitoring) in Consensus-Backed Decision Making .......................... 103 3.3
Steering 1: Planning ........................................................................................................ 104
3.3.1 The Terms “Steering” and “Planning” ................................................................... 104 3.3.2 Design of the Formal Planning System as a Component of the Steering Tools ................................................................................................. 106 3.3.3 Management Tools on the Three Planning Levels ............................................... 107 3.3.4 Market and State Control as a Complement to NPO Autonomy ...................... 114 3.3.5 Tools, Methods of Steering (Planning, Controlling, Quality Management) ..... 116 3.4
Steering 2: Controlling ................................................................................................... 123
3.4.1 Concept and Content of Controlling ...................................................................... 123 3.4.2 Controlling Tools ....................................................................................................... 124 3.4.3 Accounting as an Information and Steering Tool................................................. 126 3.4.4 Organizational Integration of the Controlling Function ..................................... 137 3.4.5 Organizational Requirements for an Effective Use of Controlling in NPOs .. 138 3.5
Steering 3: Quality Management (QM) as a Building Block of Management Excellence ................................................................................................ 139
3.5.1 Terminology, Overview............................................................................................. 139 3.5.2 Quality Steering (Q Planning and Q Control) ....................................................... 141 3.5.3 Operational, Quality-Driven Process Management .............................................. 143 3.5.4 QM Organizational Design ...................................................................................... 145 3.6
Leadership and Motivation............................................................................................ 148
3.6.1 Leadership and Power ............................................................................................... 149 3.6.2 The Followers and Their Motivation ...................................................................... 154 3.6.3 Leadership Behavior and Success ............................................................................ 158 3.7
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Organization Design and Development ..................................................................... 166
Contents
3.7.1 The Term “Organization” ........................................................................................ 166 3.7.2 Types of NPO Organization Structures ................................................................. 172 3.7.3 Implementation Units, Namely NPO Institutions or Operations ..................... 178 3.8
Innovation ........................................................................................................................ 185
3.8.1 Adaptation, Change and Innovation Processes..................................................... 185 3.8.2 Change Management: Designing Innovation Processes ...................................... 187 3.8.3 Conference Work with Large Groups .................................................................... 191 3.8.4 Project Management .................................................................................................. 192 4
Marketing Management ..................................................................................... 195 4.1 Fundamentals of Marketing Management .................................................................. 195 4.1.1 Fundamental Principles of For-Profit Marketing ................................................. 195 4.1.2 Exchange Relationships of NPOs ........................................................................... 197 4.2
The Fribourg Marketing Approach for NPOs........................................................... 204
4.2.1 Transferring and Broadening the For-Profit Marketing Approach ................... 204 4.2.2 The Market Adaptation Aspect of NPO Marketing (Marketing Maxim) ......... 204 4.2.3 The Market Influencing and Creation Aspect of NPO Communication ......... 206 4.3
The Marketing Concept ................................................................................................. 208
4.3.1 Structure and Content of the Concept ................................................................... 208 4.3.2 Overall Positioning of the NPO: CI and COOPI ................................................ 211 4.3.3 Areas of Marketing Application ............................................................................... 214 4.4
Operational Marketing Planning .................................................................................. 223
4.4.1 From the Marketing Concept to the Operational Planning Sequence .............. 223 4.4.2 The Sequence of the Operational Marketing Planning ........................................ 223 4.4.3 The NPO Marketing Mix: The Marketing Toolkit ............................................... 226 5
Resource Management ....................................................................................... 231 5.1 Foundations ..................................................................................................................... 231 5.2
Members ........................................................................................................................... 232
5.2.1 Member Roles ............................................................................................................. 233
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Contents
5.2.2 Motivating Members to Assume Their Roles ........................................................ 236 5.3
Voluntary Executives ..................................................................................................... 239
5.3.1 Characteristic Features of the Voluntary Governance Function ........................ 239 5.3.2 How to Design Efficient and Attractive Voluntary Governance Work ........... 240 5.3.3 Deviations from the Ideal Type of Voluntary Government Function .............. 241 5.3.4 Professionalizing the Voluntary Governance Work ............................................. 242 5.4
Paid Managers ................................................................................................................. 246
5.5
Paid Staff .......................................................................................................................... 247
5.6
Voluntary Staff ................................................................................................................ 253
5.7
Financial Resources ........................................................................................................ 254
5.7.1 Overview...................................................................................................................... 254 5.7.2 Types of Goods .......................................................................................................... 254 5.7.3 Types of Financing..................................................................................................... 256 5.7.4 Providers of Financial Resources ............................................................................ 257 5.7.5 Sources of Financing ................................................................................................. 258 5.7.6 Decision Criteria for the Financing Mix ................................................................. 263 5.8
Equipment and Administrative Tools ......................................................................... 266
5.9
Cooperations.................................................................................................................... 267
5.9.1 Umbrella Associations ............................................................................................... 268 5.9.2 Working Groups......................................................................................................... 269 5.9.3 Co-operative Enterprises .......................................................................................... 269 6 7 8
12
Directory of Quoted and Further Reference Literature ..................................... 271 Index ................................................................................................................... 275 Authors ............................................................................................................... 293
Fundamentals on the Management of NPOs
1 Fundamentals on the Management of NPOs Business and trade associations, trade unions, chambers of commerce, health leagues, relief organizations, self-help groups, sports and leisure organizations, environmental and consumer protection organizations, political parties, cooperative building societies, churches, idealistic communities: the shapes and activity fields of private nonprofit organizations (NPOs) in Europe are as varied as their numbers are impressive. In Switzerland, as well as in Austria, for example, there are approximately 100,000 active private organizations, while in Germany the number of registered associations alone has passed the 600,000 mark. These organizations, which are often collectively termed the Third Sector, constitute a central pillar of modern western societies. They deal with concerns and cover needs that are not addressed in the form required by enterprises, nor considered by the state to be part of its task. And yet these needs are so important and vital for groupings of individuals within society, that they judge these organizations to be indispensable. As a consequence, and in line with a liberal societal notion of personal responsibility and self-organization, people join together in NPOs to address their specific needs. Thus, a (third) sector has emerged with institutions that – given their characteristics – can neither be attributed to the state nor to the classical market sector, but which are in close contact and exchange with these sectors and assume an intermediary position. They form the organized citizens’ or civil society.1 1.1 Definition and Characteristics of Private Sector NPOs From a civil society perspective, this economic “three-sector” view needs to be additionally complemented by the sphere of those organizational forms that provide benefits to a community, namely families and clans (illustration 1). Such a “four-sector” view seems justified, since the questions “whether”, “where” and “to which extent” NPOs are emerging in a society can be answered from at least three different perspectives: The role of the state and its bodies: The fewer societal tasks the government assumes, the greater the need for NPOs to provide additional services that complement the state’s offering. The scope of governmental services in democratic states is determined by political will, formed through majority decisions, and by the budgetary constraint of tax income. Finally, a permissive (as opposed to an authoritarian) state system is an indispensable prerequisite for civil society organizations to operate under legal forms compliant with the law. 1 Throughout the book we have tried to use gender-neutral formulations. We would like to explicitly point out that where for reasons of simplicity only the male form was chosen, the female gender is meant to be included on equal terms.
17
Fundamentals on the Management of NPOs
Characteristics of the economic system: The economic system and conditions affect both the supply of resources and the service demand. On the supply side, a certain degree of prosperity in a society is a prerequisite to making time and financial resources available to allow for engagement in civil society. In addition, enough personal freedom is needed for everyone to be able to decide independently on the use of their time and money. On the side of the service offerings, a substitution relationship can often be found between civil society and services provided commercially, as seen, for example, in the competition between amateur sports clubs and for-profit fitness centers. In other areas, the services of private NPOs are a reaction to the negative societal effects of economic activities, with examples including trade unions or environmental and consumer protection organizations.
Illustration 1: NPOs in the “four-sector” model (according to Evers/Laville 2004)
The influence of family structures: In modern societies, private NPOs take the place of family and clan community structures, with their mostly local networks. NPOs organize communal life and replace or complement traditional family-based solidary communities. It can be said that all three influence factors mentioned above decisively affect the resource supply of NPOs (particularly in terms of financial funds and work input), as well as the demand for their services.
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Definition and Characteristics of Private Sector NPOs
For NPOs, the boundaries between the three spheres of state, market and family are mostly fluid, as shown in the Evers and Laville (2004) model. State authorities, for example, take over services from NPOs and finance them, but also assign or transfer services to NPOs that were originally within the authorities’ scope by way of purchase-of-service contracts. Enterprises, in turn, enter activity spheres historically covered by NPOs, such as refugee support or nursing care, while NPOs have started offering classical personal services such as counseling or travel. And finally, in the sphere of families and communities, club-like structures have been around for a long time that range from neighborhood help to alternative sports leagues. In practice, these fluid boundaries make it difficult to gain a detailed overview of the NPO sector and categorize it definitively. 1.1.1
Definition of NPOs
In the context of the Johns Hopkins Comparative Nonprofit Sector Project (CNP) that was launched at the beginning of the 1990s by the University of Baltimore, Salamon and Anheier (1992) identified five criteria that each need to be fulfilled by organizations to be included in the NPO sector according to international standards: 1) Degree of institutionalization: The entity must provide evidence of a certain amount of formal structuring (e.g. statutes, governing rules and procedures), although the existence of a legal form and identity is not stipulated. 2) Private ownership: The entity must be institutionally separate from the state and must also not be subject to a dominant state influence. 3) Profit-non-distribution constraint: Profits may be earned, but must not be distributed to owners or those who control the use of organizational assets. Profits must be reinvested to accomplish the non-profit purpose of the organization. 4) Self-governing: The entity must – from a legal as well as an organizational point of view – be governed autonomously and must not be under the control of a profit-seeking enterprise or a governmental body. 5) Voluntary: There must be a meaningful degree of voluntary involvement in terms of contributions, membership or participation in the organization. Originally, these criteria corresponded to a predominantly Anglo-Saxon understanding of NPOs, with a strong focus on the charity sector in the form of aid and relief organizations, for a common or communal benefit. To make this system transferable to other countries and thus applicable to international comparative studies, Salamon and Anheier tried to empower the system with flexibility by using relatively loose definitions for the criteria. In spite, or due to, these fuzzy definitions, ample room for debate has emerged as to which types of organi-
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Fundamentals on the Management of NPOs
zations should be attributed to the NPO sector. In other words, chambers, churches, regional self-governed bodies such as homes for the elderly, museums and theaters, cooperatively organized insurance associations and societies for the operation of wind farms, are just a few examples of institutions that can only reservedly be included in the NPO sector on the basis of this international definition, while nonetheless representing an essential part of non-profitcentered organizations in non-Anglo-Saxon countries. Yet, it seems quite reasonable to include them in reflection and consideration of the development of an NPO-specific management theory, since the management challenges for these organizations are comparable to those of organizations that are traditionally categorized as within the NPO sector. Thus, deviating from Salamon/Anheier (1992) we are keeping the definition and delineation of NPOs correspondingly wide. For the context of this book, nonprofit organizations (NPOs) are thus defined as all those entities located somewhere between the state, the familial communities and private enterprises that: 1) are privately owned (by persons, companies or other NPOs) and constituted predominantly in the legal form of an association/club, foundation, cooperative society or by law as a self-governing body (mostly with compulsory or legally required membership); 2) as systems do not primarily pursue a profit-making purpose, but – in line with their mission – provide specific services to identifiable beneficiaries to cover certain needs. They are therefore also called need-covering entities. Their missions are self-determined or have been transferred or assigned to them – at least partially – by the government; 3) have been constituted either as mutual-benefit (member-serving) NPOs with the purpose of advocating the interests and fulfilling the needs of their members, or as thirdparty-serving NPOs, to offer services to third parties in the form of aid, support or promotion, based either on an ethical, religious or ideological mission (e.g. welfare institutions or charities), or simply to spread an idea or influence other people’s behavior. Even in this latter case, membership-based ownership structures are possible, whereby third parties, such as clients or external target groups, are addressed as beneficiaries of the organizations’ services in lieu of members; 4) advocate the interests of their members or clients vis-à-vis the state and other organizations (advocacy, lobbying); 5) provide services to individuals (so called individual goods) and / or make an impact and achieve benefits for entire groups or populations (so called collective goods); 6) are characterized by the voluntary work of their members or other engaged persons in their highest governing bodies (e.g. boards of trustees, governors or directors). This vol-
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Definition and Characteristics of Private Sector NPOs
untary activity of members and others in decision-making and on advisory boards is one of the main characteristics of NPOs; 7) in many cases recruit members or others as volunteers, who contribute to the NPOs service operations mostly free of charge (e.g. transportation services for disabled people). Thus, all productive social systems will be termed nonprofit organizations that – complementary to the state and to market-driven profit-seeking enterprises – strive to cover specific needs, lend their members (mutual-benefit) or third parties support or offer advocacy in regard to changing perceptions or behavior (dominance of the nonprofit purpose). As associations, clubs, self-governing bodies, cooperative societies, foundations or nonprofit corporations, they are governed by elected voluntary board members and can be supported in their work by paid staff and volunteers. They finance their services (individual goods, meritorious goods or collective goods) through membership fees, donations, contributions, prices or fees. Occasionally achieved financial surpluses are non-distributable as cash returns to members or owners in any direct way. Certain refunds relative to service consumption are, however, possible. Transition from private autonomy to state control or market control is possible or even frequent in certain limited areas (e.g. purchase-of-service contracts). The wording “nonprofit” used in the definition underlines the crucial importance for these organizations to focus on covering specific needs or to advance a common interest in contrast to the profit or return-on-investment goals of enterprises. This does not preclude NPOs from also achieving a profit. Such a revenue surplus, however, would only be a means to fulfill the organization’s purpose and not, in itself, the purpose of the organization. Therefore the term “nonprofit” is also coupled with the profit-non-distribution constraint: Profits are to be used for the benefit of the targeted service recipients, be it through internal investments in the development of the service offering and its quality, by passing them onto members, clients or users in the form of reductions in contributions and fees or refunds (e.g. with cooperative societies), or through internal subsidizing, in the sense of funding non-selfsupporting service areas (such as charitable offerings or advocacy/campaign work). NPOs, too, have to strive for a balanced account, as the pursuit of their aims is also only possible within the limits of the funds that can be raised.
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Fundamentals on the Management of NPOs
Illustration 2: The Diversity of Nonprofit Organizations
The term NPO was originally coined by business administration theory. This research discipline traditionally dealt with profit-seeking enterprises. However, once business administration theory began to develop an interest in non-profit-seeking organizations, this new area of study needed delineation from the existing one. Since a positive generic term could not be found for these organizations, the negative term “nonprofit” was chosen to create a clear
22
Definition and Characteristics of Private Sector NPOs
demarcation. It has meanwhile become common in science and practice, thus largely supplanting other terms such as not-for-profit organizations or non-commercial organizations. At the same time, attempts to replace negatively defined terms by ones that make use of positive characteristics (e.g. social-profit organizations, social-value organizations, civil society enterprises) have been unsuccessful to date. Another name that is also used for organizations in the third sector is the term nongovernmental organization (NGO). It covers all those organizations that assume public tasks mostly on an international level, which, however, are legally independent and, as selfgoverning bodies or organizations with a legal form under private law, assume outsourced (or transferred) state tasks. This term thus includes globally active humanitarian organizations for development cooperation that provide services co-funded by the government, as well as politically active associations that take a critical and thus regulating stance towards the policies of governments and supranational organizations (e.g. UN and its sub-units). As illustration 3 shows, the distinction between for-profit and non-profit organizations is not just a matter of theoretical, terminology-related discussions but is also actually firmly rooted in reality. The illustration compares for-profit and non-profit organizations on the basis of a number of essential features and highlights the significant structural differences between these two organization types. At the same time, it points to the fact that the special properties of NPOs, and the associated significant challenges, also require specific theories and curricula in order to offer the practitioner adequate problem-solving tools.
23
Fundamentals on the Management of NPOs
Illustration 3: Ideal-typical differences between private enterprises and NPOs
24
Index
7 Index 360° assessment Acceptance Accountability Accounting - system Achievement motivation Actual state portfolio Adaptation, Change and Innovation Processes (a/c/i) Adhocracy Advocacy Alliances marketing Annual budget Annual plans Appraisal system Articles of association Assembly of delegates Assembly of foundation trustees Assessment of success Association (or federation) structures Assumptions review Attractiveness of the market Authority - pillars of (personal) authority Auto-complexity Autocracy Balance sheet Balanced scorecard (BSC) Basic orientations of NPOs - market-driven - mission-driven - reputation-driven - structure-driven Basic views of an NPO (paradigms) Benchmarking Best practice Board of governors, trustees Board of (paid) managers Budgeting Bureaucracy
250 see Change management 126 126, 127 126, 259 162 118 185 49 20, 219 217 113 114 250 38 see Organization structure see Organization structure 86 see Organization structures 114 118 149 150, 151 46 49 127, 129 116, 121 89, 90 89, 90 89 89 89 37, 38 122 122 182 101, 174, 183 126 49
275
Index
Bureaucratization - over-bureaucratization - under-bureaucratization Business administration theory (of NPOs) Business or service delivery processes Business process reengineering (BPR) Business strategies Bylaws Campaigning Capacity for problem-solving Capacity to innovate Capital of the NPO Cash balance Cash basis accounting Cash-flow Catalog of system capabilities Central governing bodies Chain of command Change management Charisma Charitable systems Civil society Client orientation Client satisfaction Client-facing employees Club goods Codes of best practice Cognitive theories Collective actions Collective bargaining (systems) Collective good(s) Commercial accounting Committees and commissions Communication - processes - systems - theory Competitive forces Completed staff-work Compound structures Concepts Conference of the grass-roots group chairs Conference work with large groups
276
see Organization design see Organization design 22, 31 143 141 112 107, 111 219 186 186 129, 130 129 127, 129 130 82 see Organization structure see Organization structure 187 150 201 17 78 139 228 238 102 45 25 201, 204, 220 20, 28, 38, 52, 130, 236, 238, 254 126 see Organization structure see Fribourg marketing approach 201 see Fribourg marketing approach 56 87, 102, 114, 243 28 111 see Organization structure 191
Index
Conferences of the unit managers Conflicts of interests Consensus-backed decision-making and implementation Constitution Consumer goods Continuous improvement - principle of Contracting out Control mechanisms in an NPO Controller Controlling - function (and tasks) - tools Cooperations and cooperative systems Cooperative - advertising - enterprises - interaction - solutions Co-optation Coordination Co-producer Core business processes Core capabilities Corporate governance Corporate identity (CI) and cooperative identity (COOPI) Corporate strategies Cost(s) - (and performance) accounting - center and product (or service) cost accounting Cost-benefit considerations Credence goods Credit financing Culture Current (operating) accounting, expenses, revenues Customer-supplier relationships Cybernetic model Debt Decentralization Decentralized agencies Decision preparation Decision-making - process and arenas
see Organization strucutre 99 75, 97 31 196 78 93, 147 115 200 123 60, 116, 123, 125 104, 106, 137, 138 124 67, 231, 267 204 see Cooperations 102, 114 67, see Cooperations 240, see Organization structure see Organization structure 51 144 84 102 28, 182, 206, 207, 210ff 112 129 129, 133 126 85 52 257, see Financial resources 54 129 140 94 130 see Organization structure see Organization structure 87 97 98, 99, 106
277
Index
Deficit 129 Definition of NPOs 19 Degree of delegation 73 Delegation see Organization structure Demotivation 154 Dependence or independence portfolio 262 Designation-capital 130 Deviation analysis 131 DIN EN ISO 9000 139 Direct democracy 48 Displacement effect 263 Division of tasks 28 Division of work and departmentalization see Organization structure Divisional and regional organization structure see Organization structure Divisional or service structure see Organization structure Donations 259ff Donors 259, 263 Drivers of competition 56 Dual or alliance membership 172 Early problem detection 45, 60, 121 Early warning system 126 Earning-capital 130 Economic gauges 135 Effectiveness 35, 81, 84, 135 Efficiency 35, 81, 84, 85 Elections 240 Employee - management 240 - performance review 157 - satisfaction 139 Employer branding 249 Equilibrium principle 92 Equity financing see Financial resources Ethics 54 European Foundation for Quality Management (EFQM) and its model 79ff European Quality Award (EQA) 79 Excess demand 50 Exchange - relationships 41, 196, 197, 203, 208 - sphere 40 - systems 199, 200 Exclusion principle 254 Executive governance officers 34
278
Index
Expectations of the exchange partners 77 External factor 221 Extrinsic rewards 156 Federalist model see Organization structure Feedback system 250 Fees 258 Fields of tension in NPO management 87ff, 99 Finance and accounting 67 Finance surrogates 260 Financial accounting 126 Financial budget 128 Financing and financial resources 254ff Financing mix 263, 265 Flow chart 144 FMM see Fribourg Management Model Follower orientation see Leadership behavior Followers and their motivation 154 Forecast portfolio 119 Form of legitimization 43 Formal organization 31, see Organization design Formalization see Organization structure For-profit marketing 195, 204 Foundation(s) 28, 176 - council see Organization structure - structure(s) see Organization structure Founders 257 "Four-sector" model 18 Freeriders 28, 256 Free-riding 238 Fribourg Management Model (FMM) 33, 37, 63, 66, 75, 79, 111, 112, 140, 142, 195, 231, 247 - design logic 62 Fribourg marketing approach 195, 204 Functional - area concepts 108, 141 - area strategies 119 - competency to issue directives see Organization structure - management tasks 65 - organization structure see Organization structure Function-related structuring see Organization structure Fundraising 204, 205, 216 Funds marketing 216 Future and goal perspective 35 Future search 191
279
Index
Future workshop General assembly (of members) General management (theory and tasks) General management concept General system conditions Governance function Governance position Government grants Grant-giving foundations Grants Grass-roots associations Grassroots democratic control Grass-roots groups (and members) Group structure Habituation effect Headquarters Hearings Hierarchy Hierarchy of plans Human resource management (HRM) Human resources Identity elements Image of Man Impact (success) Impact statement Implementation or operating units Incentive(s) - system (and policy) Inclusion of the service recipients Income statement Indicator systems Individual (or private) goods Inducement-contribution theory (and principle) Industry vision Informal - contacts - leadership - organization Information and communication system(s) Information technology Information-gathering problem
280
191 184, 233, 246 65, 71 141 87 242 240 216 28 259 172 115 172, 182 see Organization structure 156 see Organization structure 101 149, 170 106 59, 67, 247ff 39 see Fribourg marketing approach 152 85 130 see Organization structure 236 250 39 128, 130 121 20, 38, 52, 130, 200, 254 44, 77, 92, 205, 236 111 48 see Leadership see Organization design 60, 266 60 91
Index
Innovation - approaches - design of innovation processes - process Input sources portfolio Input-output model Inside-out principle Intangibility (of services) Intangible assets Integrated accounting in NPOs Integration model Integration of an external factor Intellectual capital reporting Intelligent (cognitive) organization Interdependence of effectiveness and efficiency Internal - client-supplier relationships - marketing - subsidization Investment accounting Investment goods Iron law of oligarchy ISO norms (and standards) IT equipment and tools IT management Job enlargement, enrichtment, rotation Job profiles Job requirements Joint stock companies / corporations Key figures and systems Key performance indicator(s) and system Knowledge - explicit - generation - management - tacit Labor market strategy and staffing Leadership - behavior - compendia - culture - function - guidelines
185 see Change management see Change management see Change management 261 40, 50 113 50, 52 130, 136 128 see Organization structure 51, 52 136 45 85 78 52, 218 259 129 196 49 122, 141 266 67 59 59 249 115, 178, 182 116, 131 131 57 57 57, 58 46, 58, 59, 60, 78, 82 57 249 71, 148ff, 164 159, 160, 164 152 160 39 152, 158
281
Index
- personality - relationships - roles - styles --- authoritarian style --- democratic style --- personal style - situational leadership - situational leadership theory - success - task - transactional leadership - transformational leadership Lean management (approach) Learning - adaptive or “single-loop� - barriers to - capability - "double-loop" - organization - "triple-loop" Legally independent - entities - operating units - sub-associations Legitimacy - direct - indirect - through tradition - through values Life cycle principle Limited liability company / companies Line managers Line organization Lobby organizations Lobbying and lobbying (or influencing) process Management - as a systematic problem-solving process - board - by objectives and by exception (MBO + MBE) - excellence - model - of exchange processes
282
150 148, 150ff 153 149, 150 158 158 see Leadership behavior 240 see Leadership behavior 158 152 see Leadership see Leadership 170, 178 58 61 46, 82 58 57, 61 58 115 see Organization structure 182, see Organization structure 43 43 43 43 43 119 178, 184 87 see Organization structure 268 20, 52, 205, 220 32, 71 74 243, 246 75, 95, 138, 168, 180, 244 77, 79, 81, 139, 141 62, 65 67
Index
- of NPOs 9, 17, 271 - orientation 36 - philosophy 75, 77 - processes 143 - system 34, 105, 107 - tasks in system management 71, 72 - theory (of NPOs) 33 - tools 107 Managers 33, see Paid managers Market - control 27, 115 - influencing 205 - segmentation 224 Marketable goods 256 Marketing 203 - application areas see Fribourg marketing approach - as mandate execution 222 - budget 225 - concept see Fribourg marketing approach - control 225 - management 37, 62, 65, 67, 69, 143, 195, 231 - maxim 195, 204 - mix 225ff - organization design 225, see Fribourg marketing approach - perspective 35, 64, 196 - principles see Fribourg marketing approach - strategy 195 - system 105 - transfer 218 Marketing-driven strategies 64 Matrix structure see Organizational structure Maturity level and maturity-level oriented leadership 162ff Means accrual 128 Measurement and assessment of outcome and impact 122 Member(s) 228, 232, 257 - activation 217 - marketing 215 - motives 237 - ordinary or regular 233 - relations 204 - relationship management 218 - roles 215, 233 - satisfaction 139
283
Index
- types - vision Membership - access - contributions - fees - restricted or extraordinary - systems Member-value-reporting Meritorious goods Meritorious systems Methods of work organization Micro-political processes Micro-politics Milestones Mission - proposition - statement Monitoring as a management function Morphological box Motivation - as a leadership task - process - theory Motivational needs Multi-level - association structure models - associations (and federations) - system Multiple-subordination Multiplier effect Mutual-benefit (member-serving) NPOs Need(s) - for esteem - for love and belonging - for self-actualization - hierarchy of - physiological - safety Need-covering entities Net assets Net income, loss, worth New governance or steering models
284
237 110 41, 233, 236, 238 234 258 235, 254 235 201 133, 136 130, 201, 256, 258 201 59 47 99 see Project management see Fribourg marketing approach 38, 106, 107, 110, 111, 141, 172 103 60 148, 154, 157 156 156 44 151 see Organization structures 28, 182, 267 28 see Organization structure 263 20, 25 155 155 155 155 154 155 155 20 129 129 see New public management
Index
New public management (NPM) Non-governmental organization (NGO) Non-market constellation and systems Non-marketable goods Non-members Nonprofit - governance - organizations (NPOs) or Not-for-profit organizations --- management --- management task --- related input-output model --- specific key figure system Non-trivial systems Norm strategies Normative - level - management tools - policies - principles Oligarchic structures, conditions Oligarchy Olson theory Open space technology Operating units Operational - controlling - foundations - level - marketing planning - planning and sequence - plans Optimal job structuring Organization - chart - design - structure --- of NPOs Organizational - development (OD) - governance - learning capacity - stretch - structure of the “federation/association� type
115, 178, 216 23 27, 200 254 235, 257 22 102, 184, 243ff 20, 21, 23, 33ff 33, 35 37 40 132 39 119 107 108 113 92 49, 88 49 238 192 see Organizational structure 123, 126 28 113 see Fribourg marketing approach 113, 223 113 248 166 166 166 166ff 166 168 48 78 113 28
285
Index
- units Outcome - gauges - goals - indicators Output gauges Output recipients Outside-in planning Outsourcing (solutions) Overall - budgets - goals - positioning of the NPO - success gauge Overall-structure model Paid - management / managers - management board - staff Paradigm Parallel organization structure Participation - approach - gain - principle Performance - accounting - appraisal - budget - controlling - drivers - goals - management - measurement and measures - measurement systems - monitoring - process - -oriented information system Personal persuasiveness Personnel - marketing - recruitment and selection - requirements
286
see Organization structure 131 134 84 122 134 144 112 115, 145, 178 115 84 see Fribourg marketing approach 131 see Organization structure 87, 183, 239, 242, 244, 246, 247, 264 87 247, 253 see Basic view see Organization structure see Organization structure see Change management see Change management 205 129, 226 133 250 129, 130 133 133 84, 131 134 133ff 121 133 131 131 see Charisma 216 249 249
Index
Petition procedure 103 Place 227 Planning 104, 116 - cube 105 - levels 116 - logic 141 - system 106 Political control / systems 27 Politics 228 Portfolio - analysis 112 - method 60, 116, 259 - technique 118 Positioning see Fribourg marketing approach Positioning cross see Fribourg marketing approach Power and its sources 47ff, 149, 243 Price, prices 204, 226 Price differentiation 258 Pricing policy 204 Principle of holistic thinking and action 92 Principle of MBO and MBE see Management by objectives and by exception Principle of process view 92 Principles of justice see Incentive system Private (sector) nonprofit organizations (NPOs) 9, 17 Problem-solving - methods 60 - capacity 46 - phase model for the problem-solving and decision-making process 100 - process and process model 97, 98, 185 - responsibility 35 Process, processes 143 - architecture 143, 144 - costs 144 - goals 144, 145 - identification of 143 - improvement ideas 145 - management 100 - organization 166 - owner 146 - quality 145 - responsibility 146 - view 77 - -based structure 141
287
Index
Procurement and recruitment marketing 214, 231 Professional group and target group-related structuring see Organization structure Profit-and-loss account 128 Profit-non-distribution constraint 19, 21 Project - budget see Project management - concept see Project management - controlling see Project management - management 59, 192 - organization 269 - planning see Project management - steering committee see Project management - team / teams 171, see Project management Promoter model see Change management Promotion 226 Prosumer 51 Provision of public goods 128 Public good(s) 254 Public relations 205, 219 Public sector 178 Public-value-reporting and report 133, 136 Purchase-of-service contracts 19, 21, 56, 88, 115, 202, 216, 222, 257, 264 Qualitative indicators 126 Quality 77 - circle / circles 147, 269 - control 143, 146 - definition 139 - management (QM) 60, 116, 139, 140 --- concept 141 --- managers 146 --- manual (or process management manual) 145, 147 --- organizational design 145 --- system 122, 140, 145 --- tasks 142 - orientation of an NPO 44 - standards 122, 145 - steering 141 - teams 147 Quality-centered workflow and process design 139 Quality-driven process management 141, 143 Regional grass-roots groups 182 Region-related structuring see Organization structure Relative competitive position 118
288
Index
Remuneration policy Representative democracy Requirement profiles Resistance problem Resource(s) - consumption - inputs - intake - management - portfolio - recruitment - sphere - system Resource-driven perspective Resource-driven strategies Responsiveness Responsiveness capability Revenue-expenditure accounting / statement Rolling planning Routinization Scenario technique Scenario-based brainstorming Selection procedure Selective incentives Selective transfer of information Self-actualization Self-concept Self-governing Self-marketing Self-organization Self-revelation Sender image Separation of power model Servant leadership Service(s) - delivery process - marketing (and actions marketing) - offering - provision sphere - quality - recipients - sector Service-mindedness
see Incentive system 49 240 91 128 260 128 37, 62, 67, 70, 79, 143, 231, 232 260 231 198 105 64, 113 64 40 83 126 113, 114 171 118 60 240 238 243 152 107, 110 19 218 see Organization design see Fribourg marketing approach 52 see Organization structure see Leadership 39, 196, 200, 202 53 204, 218, 221 226 199 39 228 39 204
289
Index
Service-related structuring Shared knowledge Shared values Simplified image Social - balance sheets - cost-benefit accounting - indicators account - marketing - performance and impact reporting and reports - service enterprise - service institutions Societal stakeholder satisfaction view Society-related reporting Solidarity contribution Sources of funding Sovereign organ Span of (management) control Specialization Sphere(s) - advocacy sphere - environmental - explorative - of action addressees and service recipients - surrounding Splitting Splitting procedure Sponsorship Staff-line problem Stakeholder(s) - approach - model - satisfaction Standard operating procedures (SOPs) Standardization Standby capacity for service delivery Standby lobbying State Control Statement - of financial position - of operations - of payments received and made Statutes
290
see Organization structure 58 53, 54 45 136 133 136 205, 219 133, 136 182 177 81 136 258 254 246 see Organization structure see Organization structure 198 40, 41, 197 40, 83, 197 198 40 101, 193 see Splitting 216, 259 88, 102, 242 35, 43, 135 136 46 77 145 171 39, 52 217 114 128, 129, 130 128 128, 129 38, 107, 111
Index
Steering 104, 123, 139 - tools and methods 106, 116 Stewardship functions 71 Stimulus-response-theory 44 Strategic - business units (SBU) 118 - control 126 - controlling 123, 124 - level 112 - management 84 - management task 243 - measures 119 - plans and planning 113, 124 - success potentials 55 Strategy, strategies 55, 106, 107, 112 Stretch goals 113 Structure-driven organization 90 Structures of organizational governance 48 Subsidies 259, 264 Success potentials 112 Success ratio 130 Supervisory board 174 Supporting processes 143 Surplus 129 Swiss GAAP FER 21 127 SWOT analysis and matrix 118 System - capabilities 81ff - conditions 81, 86 - management 31, 62, 65, 68, 71, 73, 88, 109, 139, 143, 168, 194, 248 --- design criteria 81 --- general goals 81, 84 --- governance model 75, 92 --- tasks see Management tasks in system management --- tools and methods 76, 108 - steering see Steering - success 84 System-internal communication 46 System-theory considerations 82 Tangible good(s) 50, 51 Target portfolio and matrix 119 Task orientation see Leadership behavior Task-related maturity level see Maturity level
291
Index
Task-related structuring Theory of association management Theory of human motivation Theory X and theory Y Third parties Third Sector Third-party-serving NPOs Three-pillar accounting system Total Quality Management (TQM) - philosophy "Townhall", structured large group meetings Trivial systems Types of Financing Types of Goods Types of NPO Organization Structures Typology of human images Umbrella associations "Uno actu" principle Use of funds Valuation Value systems Value-for-money (and reporting) Variable forms of remuneration Verbal positioning Visions Voluntary - executive positions - executives - governance board - governance body / bodies - governance function - governance system - governance work - governors - officers - staff - work Volunteers Work organization and design Working groups Zero-base budgeting
292
see Organization structure 33, 34 154 152 257 17, 30, 271 20, 25, 88 131 60, 75, 77, 139, 196 141 101, 191 39 see Financial resources 199, 254 see Organization structures 152 268 51 263 128 53, 54 131, 133 see Incentive system see Fribourg marketing approach 107, 110 19 35 87, 239ff, 253 243, 246 87, 101, 114, 115, 174, 176, 183, 243, 244, 247 239ff, 244, 253 239 242ff 247 239 239. 247, 253 20, 253, 260 21, 264 248 see Cooperations 120
Authors
8 Authors Prof. Dr. Urs Bumbacher Distinguished Adjunct Professor at Asian Institute of Technology (AIT), Thailand, and Affiliated Professor at the Institute for Research on Management of Associations, Foundations and Co-operatives (VMI), University of Fribourg, Switzerland. After graduating at the University of Basel in Economics and Business Administration he joined the Strategic Planning department of a major Swiss bank for three years. He returned to the University of Basel for his PhD studies, participating in a Harvard Business School project on the competitive advantage of nations. Following his PhD he was seconded by the Swiss Development Cooperation as Associate Professor to Vietnam and Thailand and by the Swiss National Science Foundation as Visiting Scholar to University of Washington and Harvard Business School, U.S.A. In 1996 he joined the VMI in Fribourg, Switzerland, working on the continuous development of the FMM. Since the early 2000s he has been Adjunct Professor for International and Cross-cultural Management at AIT, Thailand, and Affiliated Professor for Management and Marketing of NPOs as well as for International and Cross-cultural Management at four different universities in Switzerland. He has been a member of the board of trustees / advisory council of a number of NGOs and international umbrella associations. Prof. Dr. Markus Gmür Director of Research at the Institute for Research on Management of Associations, Foundations and Co-operatives (VMI), holder of the Chair of NPO Management at the Faculty of Economics and Social Sciences and Vice-Rector at the University of Fribourg, Switzerland. After graduating in business administration at the University of St. Gallen and in sociology at the University of Bamberg, he became a scientific researcher for the Chair of Management of the University of Constance, where he gained his PhD under Prof. Dr. Rüdiger Klimecki on the topic “Normal Crises – Uncertainty as a Management Problem” (in German). Habilitation and Acting Professor at the University of Constance. Subsequently, Professor of Human Resources Management and Vice-Rector for Teaching at the European Business School (ebs.), Oestrich-Winkel. Prof. Dr. Hans Lichtsteiner Director of Continuous Education as well as Honorary Professor at the Faculty of Economics and Social Sciences at the University of Fribourg, Switzerland. After completing his MBA, he became (head-) assistant at the VMI and gained a PhD under Prof. Dr. ErnstBernd Blümle on the topic “Voluntary Work of Elderly People” (in German). From 1996 to 2001 he was a member of the management board of the Schweizerischer Spenglermeisterund Installateur-Verband. From 2002 to 2006 he was a director of Schweizerischer Verband der Strassen- und Verkehrsfachleute.
293